The financial objectives of the business

FINANCING THE BUSINESS

Notes to Quotations

Selling jobs are said to involve a maximum of creativity. Read what famous people said about creativity. Discuss the extent to which you agree or disagree with the opinion stated below. Support your point of view with reasons and examples from your reading, your observations or your own experience. Use the expressions from the Useful Language box.

Read what famous people said about personal selling. Discuss the position of the authors. Support your point of view with reasons and examples from your reading, your observations or your own experience. Use the expressions from the Useful Language box.

Useful Language

Making things clear 1.1mean 2._____________ 3._____________ 4._____________	Listing 1. first 2. second 3___________ 4. ___________ 5.___________
Expressing contrast 1.on the contrary 2.______________ 3.________________ 4.______________	Adding 1. Moreover 2. ___________ 3. _____________
Expressing result 1.consequently 2.____________ 3.____________ 4._____________	Expressing reason 1.as 2._____________ 3._____________

1. The customer is always right.

H. Gordon Seleridge, British merchant

2. Make a customer, not a sale.

Katherine Barchettl, American clothing retailer

3. The sale begins when the customer says "yes".

Harvey Mackay, American businessman

4. A sale is not something you pursue, it's what happens to you while you are immersed in serving your customer.

Louis V. Gerstner Jr., American business executive

5. Sales depend upon the attitude of the salesman - not the attitude of the customer.

W. Clement Stone, American businessman

1. Creativity, as has been said, consists largely of rear­ranging what we know in order to find out what we do not know. Hence, to think creatively, we must be able to look afresh at what we normally take for granted.

George Kneller

2. Creativity is the unified force of experience, intellect and passion in their operation.

John Ruskin, British critic, social theorist

3. The essential part of creativity is not being afraid to fail.

Edwin H. Land, American scientist

4. Creative minds have always been known to survive any kind of bad training.

Anna Freud

5. Creativity is inventing, experimenting, growing, taking risks, breaking rules, making mistakes, and having fun.

Mary Lou Cook

take for granted - считать само собой разумеющимся, не требующим доказательства

survive v - выжить, выдержать, пережить, перенести, уце­леть

Chapter EIGHT

Unit 1 READING AND TRANSLATION PRACTICE

Finance is central to the operation of any business. More or less every activity a business undertakes will require some form of funding. Finance is needed to rent or buy premises, to purchase capital equipment, to hire labour and to obtain raw materials. Therefore, without finance a new business could not be set up and an existing business could not continue to function.

The most important objectives of any business are: Survival. This is the most fundamental objective of all businesses. In order to ensure survival there must be enough money flowing into the business to finance the necessary day-to-day expenditure, e.g. purchasing raw materials, paying employees' wages and so on. This type of expenditure is cur­rent expenditure and will normally be financed from current income, that is the money generated from the sale of the business's goods or services.

Growth and Development. While survival is the funda­mental short-run objective of the business, in the long run businesses are concerned with growth and development. Old machinery must be replaced with more modern technology to maintain and increase efficiency in order for the company to remain competitive. Growth allows the firm to diversify its product range and open up new markets. With growth come the benefits of economies of scale and a more secure position in the market. To pursue these objectives the business requires capital finance.

Survival and growth and development are obviously close­ly related. A business, which does not develop and grow, will encounter problems in the long run in maintaining its market share and its survival may be threatened. These objectives determine how a business uses financial resources, often referred to as a business's application of funds.

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